OREANDA-NEWS. In fiscal 2013 (ended March 31, 2013), the global economy began to recover gradually overall. Despite the impact of the European debt crisis and the slowing down of the Chinese economy, the United States and Southeast Asian countries registered solid economic momentum. In Japan, although domestic demand and exports remained anemic, the announcement of new economic policies and measures served as a catalyst for correcting the yen’s appreciation and a recovery in the stock market, revealing signs of brightness in certain sectors.

In this operating environment, Toyota Industries Corporation and its Group companies (“Toyota Industries”) undertook efforts to ensure customer trust through its dedication to quality as well as to expand sales by responding flexibly to market trends.

As a result, total consolidated net sales amounted to 1,615.2 billion yen, an increase of 71.9 billion yen, or 5%, from fiscal 2012 (ended March 31, 2012). The following is a review of operations for the major business segments.

The Automobile Segment made a turnaround in the Japanese market thanks to the effect of the government’s subsidy program for eco cars, while the global market expanded on the back of strong sales in the North American and Asian markets. Amid such operating conditions, net sales of the Automobile Segment totaled 858.6 billion yen, an increase of 55.5 billion yen, or 7%, from fiscal 2012.

Within this segment, net sales of the Vehicle Business amounted to 356.7 billion yen, an increase of 2.3 billion yen, or 1%. Unit sales of the RAV4 increased while those of the Vitz (Yaris overseas) registered a decrease.Net sales of the Engine Business totaled 216.7 billion yen, an increase of 19.6 billion yen, or 10%, attributable primarily to an increase in sales of KD diesel engines. Net sales of the Car Air-Conditioning Compressor Business totaled 228.1 billion yen, an increase of 21.6 billion yen, or 10%, resulting from worldwide sales increase.Net sales of the Car Electronics, Foundry Parts and Others Business totaled 57.0 billion yen, an increase of 12.0 billion yen, or 27%.

This is attributable primarily to an increase in sales of automobile-related electronic devices for the PRIUS and AQUA. Unit sales of the Materials Handling Equipment Segment overall were on par with fiscal 2012. This was because strong sales in the Japanese and North American markets were offset by stagnant sales in European, Chinese and certain emerging markets. Amid this operating climate, Toyota Industries strengthened production and sales structures and rolled out new products matched to respective markets. Although sales of lift trucks, a mainstay product of this segment, remained on par with fiscal 2012 in overseas markets, these activities led to an increase in domestic sales, resulting in an increase in net sales of the Materials Handling Equipment Segment of 25.7 billion yen, or 5%, to 596.4 billion yen.

In March 2013, Toyota Industries welcomed Cascade Corporation, which engages in manufacture and sales of lift truck attachments, as its subsidiary for the purpose of expanding its business area to respond a variety of customer needs. Net sales of the Logistics Segment amounted to 93.0 billion yen, which was on par with fiscal 2012.

Despite an increase in sales of the cargo transport business of automotive-related parts, net sales decreased due to a decline in sales of the commissioned logistics business as a result of the sale of shares of a subsidiary, Mail & e Business Logistics Service Co., Ltd., in May 2011 and its subsequent exclusion from consolidation.

Net sales of the Textile Machinery Segment totaled 39.9 billion yen, an increase of 1.4 billion yen, or 4%. This is attributable to the inclusion of Uster Technologies AG as a subsidiary in February 2012 despite decreases in sales of spinning machinery and weaving machinery, mainstay products of this segment, in stagnant market.

Net sales of the Others Segment totaled 27.2 billion yen, a decrease of 10.7 billion yen, or 28%, due mainly to the liquidation of TIBC Corporation.

In terms of overall profit, despite an increase in research and development expenses and labor costs, Toyota Industries recorded an increase in sales while promoting cost reduction efforts throughout the Toyota Industries Group. As a result, Toyota Industries posted consolidated operating income of 77.0 billion yen, an increase of 7.0 billion yen, or 10%, from the previous fiscal year and ordinary income of 86.8 billion yen, an increase of 6.0 billion yen, or 7%. Net income totaled 53.1 billion yen, a decrease of 5.4 billion yen, or 9%, from the previous fiscal year, which was attributable to an extraordinary loss of 6.7 billion yen recorded as a result of a loss on liquidation of TIBC Corporation.